Output fell in the fourth quarter last year - though perhaps less steeply than in other industrial countries - and the rise in unemployment to January was more rapid than earlier. The current account, despite a narrowing in the non-oil visible trade deficit, showed little overall improvement in the course of 1974.
Though the rise in commodity prices slackened off and ceased by the fourth quarter, the rate of inflation rose through the year, with a growing proportion attributable to domestic costs.
Despite the relief given to companies in the November Budget, their finances have remained tight, leading some of them to cut investment programmes and making them cautious in incurring new debt, including borrowing from the banks.
Published on
01 March 1975
Economic commentary